Legislation to increase the homestead property tax credit from $350 to $375 per parcel and also help counties buy voting machines won final legislative approval on Thursday.
The Senate voted 35-0 to send Senate Bill 447 by Sen. Jim Hendren, R-Sulphur Springs, to the governor, after concurring with a House-approved amendment.
Counties are reimbursed for giving the homestead property tax credits through a trust fund financed by a statewide half-percent sales tax.
In addition to increasing the tax credit, SB447 would divert $8.2 million from the property tax relief trust fund to the county voting systems grant fund. The bill also would shift other money from the trust fund to the state's long-term reserve fund.
[RELATED: Complete Democrat-Gazette coverage of the Arkansas Legislature]
As part of his re-election campaign last year, Gov. Asa Hutchinson proposed increasing the homestead credit from $350 to $375. The homestead credit was last increased by $50 by the Legislature in 2007 at the behest of then-Gov. Mike Beebe, a Democrat.
Voters approved Amendment 79 to the Arkansas Constitution in 2000 to create the tax credit.
SB447's credit increase will cost the property tax relief trust fund about $12.5 million a year, according to Hendren.
-- Michael R. Wickline